The New York
City Transitional Finance Authority (the "TFA") announced today that it
successfully priced its Fiscal 2002 Recovery Notes in a negotiated sale.
Retail buyers purchased almost 40% of the total issue during the two-day
retail order period prior to today's sale, the greatest retail participation
of any New York City issuer ever.

The tax-exempt
Recovery Notes priced at 3 basis points over the MIG-1 short-term benchmark
index. The tax-exempt fixed-rate Recovery Notes totaling $1 billion were
initially priced to yield 2.18%, and the yield was reduced to 2.13% in
the final pricing.

The Recovery
Notes were oversubscribed by over 4 times, with priority institutional
orders of almost $2 billion and total institutional orders of over $2.7
billion for the $613 million in bonds offered to institutional investors.
The Recovery Notes have a maturity date of October, 2002, and if not previously
funded with federal reimbursement, the Recovery notes will be taken out
with new money TFA bonds at maturity.

Bear Stearns
served as book-running senior manager on today's transaction, with Lehman
Brothers and Morgan Stanley serving as co-senior managers.

Moody's Investors
Service rates the TFA at Aa2, Standard & Poor's rates the TFA at AA+,
and Fitch rates the TFA at AA+. Today's Recovery Notes received the highest
short-term ratings from all three rating agencies.